Propulsion insurance

[Ming15237]

So I just got a email com my insurance company (progressive) stating they have come out with a new insurance rider called propulsion insurance, it is supposed to cover my outdrive in case of breakage, or parts wearing out failing even due to normal usage. However it requires me to have towing coverage with them to begin with, the total for this insurance would cost me $93.00 a year. I am considering it as I currently have no towing coverage what so ever. I believe they said it is also zero deductible. Thoughts and opinions? Pros and cons.... Thanks in advance ladies and gents.

 

[Opnine99]

Re: Propulsion insurance

Sounds like a great thing to have just in case.......$93 a year for a zero dollar ded. tow plan and out drive coverage for normal use.....I'd jump on it. .........just checked out the site and it is only available for boats up to 10 years old but will cover it until the boat is 21 years old. so my old 87 would not qualify :blue:

 

[Ming15237]

Re: Propulsion insurance

My boat is a 2005 with an alpha one gen 2 in it, the boat only has 190 hours on it, but given that I could use towing coverage anyways it seems like a good deal to me. I do understand that my outdrive is covered already if I hit something via my convential insurance.

 

[Opnine99]

Re: Propulsion insurance

I would take it especially if you plan on keeping the boat for a while ..........

 

[Home Cookin']

Re: Propulsion insurance

you can buy repair contracts like that for outboards, too. You have to read the conditions very carefully. Are you required to do certain types of maintenance, at particular shops, with particular parts? keep all records? what do they exclude? Do repairs under the contract have to be made at a certain certified dealer? Is one close by? Original owner? transferable?

typically your warranty cover the first 5 years, so this is for the next 5-10 for $500-$1000. Does a sterndrive usually need repairs of that range in that time? (don't everyone start saying that they once needed a repair; that is not statistics)

Like all insurance and extended warranty, it's a matter of odds--they are betting that more people do not need more than $1000 repairs in year 5-15, than those who do. For every $3000 repair they have two members with no repairs to break even. Apparently they have done the research--the house always has better odds.

That's not saying it's a bad idea, as long as the limitations and exclusions don't make it so. It's simply installment payments toward repairs you may or may not need.

 

[Ming15237]

Re: Propulsion insurance

you can buy repair contracts like that for outboards, too. You have to read the conditions very carefully. Are you required to do certain types of maintenance, at particular shops, with particular parts? keep all records? what do they exclude? Do repairs under the contract have to be made at a certain certified dealer? Is one close by? Original owner? transferable?

typically your warranty cover the first 5 years, so this is for the next 5-10 for $500-$1000. Does a sterndrive usually need repairs of that range in that time? (don't everyone start saying that they once needed a repair; that is not statistics)

Like all insurance and extended warranty, it's a matter of odds--they are betting that more people do not need more than $1000 repairs in year 5-15, than those who do. For every $3000 repair they have two members with no repairs to break even. Apparently they have done the research--the house always has better odds.

That's not saying it's a bad idea, as long as the limitations and exclusions don't make it so. It's simply installment payments toward repairs you may or may not need.

Thanks for the input home cookin, do you know what towing insurance runs on it's own? I really have no idea myself. When I broke it down it would cost me a total to have both $7.75 a month to have this coverage. However, you are wise in your advice too read the contract. I have already asked them to email me a copy of the restrictions and limitations of the contract and the policy as a whole. I have been burned way too many times by companies claiming that they will cover everything "bumper to bumper", only to later say "well in sub section B of paragraph 1245 on page 900 we clearly exclude your loss due to the spotted owl being seen in that area."

 

[Home Cookin']

Re: Propulsion insurance

that's how they get you.

Tow insurance is usually included in your boat policy, up to about $500. Even though that might not cover the whole cost of a commercial tow, for many boaters (who get towed once every 5 years) it's all you need and you don't need to pay another $150/year for towboatus. Sound like progressive charges a little extra for it; that's worth it. Of course, you have to boat where there are tow boats!

 

[agallant80]

Re: Propulsion insurance

Just remember the house always wins. About $.20 of each doller makes it to the insurance pool the rest is used in sales commission for the people selling the insurance. I would really read over the contract. If I were to guess they would make the record keeping so difficult or require maintance to be done by a certified shop or something like that.

 

[Ming15237]

Re: Propulsion insurance

Just remember the house always wins. About $.20 of each doller makes it to the insurance pool the rest is used in sales commission for the people selling the insurance. I would really read over the contract. If I were to guess they would make the record keeping so difficult or require maintance to be done by a certified shop or something like that.

Thanks again you guys are a wealth of information on here, and really make us newbies feel welcome and comfortable asking questions many of you have heard a thousand times before.

Thanks again guys!

 

[BRICH1260]

Re: Propulsion insurance

My boat policy includes $500 for towing on land or water included in the price. All in all it doesnt sound like a bad deal. If something is going to happen you could be glad you had it, if not, you threw away that $93./yr. Its, like all insurance is a gamble. Thuroughly read the contract and make sure you fully understand it and all of its limitations and exclusions. About like flipping a coin.